Resource Capital Gold Corp GDPEF

share dilution in the trustee report

[LeftBook]

PwC summarized unprofitable operations in the Trustee report. 

 

2.18 During the pre-production activities, the Company experienced significant cost overruns and faced challenges with dilution that made the operations unprofitable. Consequently, in May 2018 the Company halted underground operations at the Dufferin Gold Mine. The mill continued to operate until October, 2018 to process the remaining ore on site at the Dufferin Gold Mine and sample ore from the Tangier property.

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What is not said is that a significant portion of the share dilution, 45M or 25% of the shares comes from the Reliance days.  Those shares never brought cash to the table. Those share brought significant tax credits.

 

Had RCG had $20M of cash instead of $20M of tax credits RCG might be in a different position than it is in now. Conversely, those dollars might be the easiest dollars to mine now.

 

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Notes:

Trustee report

 

https://www.pwc.com/ca/en/car/resource-capital-gold-corp-et-al/assets/resource-capital-gold-corp-et-al-014_021519.pdf

[damianchosenone]

Leftbook, You have so much information and seem to be able to see what would be worth getting for rcg. Why dont you phone jack cartmel and talk to him or speak with the pwc group and tell then what rcg can do?

[LeftBook]

jack would probably say thanks for reading the reports He is likely the one who added the following text to the 2018 annual report (it wasn't in the 2017 report) ... "the significant components of the Company’s deferred tax assets that have not been included on the consolidated statement of financial position"